What Is Polygon (MATIC)?

Polygon (previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.

Using Polygon, one can create optimistic rollup chains, ZK rollup chains, stand alone chains or any other kind of infra required by the developer.

Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche etc. with the advantages of Ethereum’s security, vibrant ecosystem and openness.

The $MATIC token will continue to exist and will play an increasingly important role, securing the system and enabling governance.

Polygon (formerly Matic Network) is a Layer 2 scaling solution backed by Binance and Coinbase. The project seeks to stimulate mass adoption of cryptocurrencies by resolving the problems of scalability on many blockchains.

Polygon combines the Plasma Framework and the proof-of-stake blockchain architecture. The Plasma framework used by Polygon as proposed by the co-founder of Ethereum, Vitalik Buterin, allows for the easy execution of scalable and autonomous smart contracts.

Nothing will change for the existing ecosystem built on the Plasma-POS chain. With Polygon, new features are being built around the existing proven technology to expand the ability to cater to diverse needs from the developer ecosystem. Polygon will continue to develop the core technology so that it can scale to a larger ecosystem.

Polygon boasts of up to 65,000 transactions per second on a single side chain, along with a respectable block confirmation time of less than two seconds. The framework also allows for the creation of globally available decentralized financial applications on a single foundational blockchain.

The Plasma framework gives Polygon the potential of housing an unlimited number of decentralized applications on their infrastructure without experiencing the normal drawbacks common on proof-of-work blockchains. So far, Polygon has attracted more than 50 DApps to its PoS-secured Ethereum sidechain.

MATIC, the native tokens of Polygon, is an ERC-20 token running on the Ethereum blockchain. The tokens are used for payment services on Polygon and as a settlement currency between users who operate within the Polygon ecosystem. The transaction fees on Polygon sidechains are also paid in MATIC tokens.

Overview

In this dashboard, I will answer this question from Flipside Crypto:

• Visualize transaction fees on Polygon since July 1, 2022.

  Compare these to fees on Ethereum over the same time period - are they correlated? Do they diverge significantly at any points? Provide analysis as to why you think this might be.

Conclusion

• Users On Polygon Blockchain spent more than 360K Matic as Fee. If consider price of Matic as $0.60 this Users spent about $215,000 as fee on Polygon Blockchain.
• Ethereum users spent about 18.5K ETH as fee on Ethereum Mainnet. If consider price of ETH as $1200 this users spent more than $22,000,000 as fee just from beginning of July.
• In first day of July Polygon and Ethereum had mot amount of fee per day. Polygon experienced about 63K Matic in this day and Ethereum experienced about 3.5K ETH as fee in same day. If we compare Polygon daily fee against Ehereum daily fee we can see same trend.
• Average fee of Each transactions on Polygon Blockchain spent about 0.02 Matic so each transactions on Polygon spent about $0.01 from First July (I consider price of Matic $0.60) Average fee of Each transactions on Ethereum Blockchain spent about 0.0025 ETH so each transactions on Ethereum spent about $3 from First July (I consider price of Ethereum $1200).
• Polygon Blockchain experienced about 18.5M transactions since July while Ethereum blockchain experienced about 7.5M transactions in same period.
• It seems Polygon could solve some problem of Ethereum like Huge Gas fee and scalability.